A man from Toronto faces charges for allegedly deceiving 28 investors of $6.6 million intended for foreign exchange trading. The Ontario Securities Commission (OSC) claims that Seyed Mohammad Ali Nojoumi, also known as Ali Nojoumi, and two other individuals linked to Smart Prime Group diverted the investors’ funds for personal expenses and other investors, rather than placing the money in trading accounts as promised. None of them were authorized to sell securities in Ontario.
Nojoumi, aged 46, was taken into custody on charges of fraud exceeding $5,000 and possession of proceeds of crime. Subsequently, he was released on a $5,000 bail with a surety, as per records from the Ontario Court of Justice. The case first came to light in April 2024 when some of the investors, including Mina Amini and her husband, who invested $310,000, sought legal action to recover their losses, leading to the current charges against Nojoumi.
Multiple lawsuits are ongoing, alleging that Nojoumi managed to obtain around $3.5 million from investors through Smart Prime Group while facing a previous fraud charge related to an investment scheme. The earlier charge, filed by Toronto police in February 2019, was dropped nearly three years later after Nojoumi reimbursed the alleged victim.
Investor complaints suggest that Nojoumi might have utilized their funds to make the reimbursement. Allegations further indicate that after the initial charge was withdrawn in early 2022, Nojoumi proceeded to defraud an additional $6.5 million from investors in Toronto’s Persian community.
Nojoumi has not responded to requests for comments. However, in his defense statements for the lawsuits, he refutes all accusations, claiming that the investments were structured as loans not yet due for repayment.
Amidst the legal proceedings, Ensieh Rahmani, one of the defrauded investors, expressed some relief following the criminal charges. Rahmani, who invested $13,500 with Nojoumi in 2022, emphasized the emotional toll of the ordeal, calling for stricter measures against fraud perpetrators in Canada.
Amini, another affected investor, voiced hope that justice would prevail and victims would receive restitution. Nojoumi is scheduled to appear in court in Newmarket, Ontario, in the upcoming weeks.